Question

If you were to deposit $12,000 and the bank paid you 6% interest compounded quarterly, what would the maturity value of your deposit be at the end of nine years?

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\$12000\\ r=rate\to6\%\to (6)/(100)\to &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, meaning} \end{array}\to &4\\ t=years\to &9 \end{cases} \\\\\\ A=12000\left(1+(0.06)/(4)\right)^(4\cdot 9)`